Financial Action Task Force or the FATF aims to make about 200 countries around the world to treat bitcoin exchanges like banks. The latest cryptocurrency news comes today after the reports published on June 11.
The intergovernmental body reported that it wants to change how national regulators should treat all of the business which are dealing with cryptocurrencies and that the update will go public on the 21st of the month. It’s not really clear all the way but experts believe that anyone who deals with cryptocurrencies and who exchanges more than 1000 EUR worth of bitcoin will have to provide personal information.
For the business who act as exchanges and asset managers, the requirements are that the recipient of the funds must be identified which is a thing that many have insisted on doing but it is impossible with decentralized cryptocurrencies. The financial action task force can only make ‘’recommendations’’ and their applications will vary depending on the jurisdiction of the authorities. For the countries that are not compliant, they can expect to be blacklisted or removed from the entire financial system. Eric Turner, the director of research at crypto research firm Messari noted:
“Their recommendation could have a much larger impact than the SEC or any other regulator has had to date.”
He also added that the problem was ‘’one of the biggest threats to crypto today.’’ Also, the FATF announced previously an incremental approach to crypto management in 2018:
“As part of a staged approach, the FATF will prepare updated guidance on a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring; and guidance for operational and law enforcement authorities on identifying and investigating illicit activity involving virtual assets.“
As reported previously in the coming altcoin news, the G20 members pledged to implement the suggestions by the FATF in full and as the deadline approaches, crypto entities are now sounding the alarm noting that an apparent ineptitude on the FATF side will get them. However, crypto users are not sure what this means. Many stay strong on the stance that Bitcoin is not a bank and is not SWIFT. Bitcoin is also not considered as money and it is just a database. Many want to make sure they keep Bitcoin that way.
Japanese Exchanges Demand Tax Reforms From Regulators
- Citizens who must pay tax on their cryptocurrency holdings should be granted a three-year grace period to obtain necessary documentation/registration information (before fines become applicable).
- Cryptocurrency derivative transactions should be taxed separately, and the transfer of losses should be allowed (as one of the main things Japanese exchanges need)
- Small-scale cryptocurrency transactions should not be subject to taxation.
- Cryptocurrency issuance from initial coin offerings (ICOs) should be recognized as a capital transaction rather than taxable income.
- Special tax laws and tax breaks should be introduced for certain investment deals involving cryptocurrency projects.
Circle Expands To Bermuda Due To Pro-Crypto Regulation
“While many governments around the world have not kept pace with the regulatory requirements driven by rapid innovation in digital asset businesses and crypto, Bermuda has leapt forward with an exceptionally well designed and comprehensive regulatory framework: the Digital Assets Business Act of 2018 (“DABA”). […]The Circle announcement goes further:
“Bermuda’s pioneering approach is the kind of regulatory framework we’ve long advocated to unleash growth in the crypto industry. Moreover, we’ve witnessed first hand that the Bermuda government is prepared to iterate and evolve new regulatory rules alongside the pace of technical innovation in the crypto and blockchain field.”The Bermuda subsidiary of Circle will offer all kinds of crypto services including custody. The company says it will be the first major company to approach this country since the DABA passage last year. Circle is the owner of Poloniex which is still a popular crypto exchange. The post also notes that the international users will be able to access the exchange via the new subsidiary called Circle International Bermuda. Circle expands to Bermuda mainly because of the great regulatory climate but they say that the upcoming features will not be immediately available for US customers due to the US regulations. Jeremey Allaire, the CEO of Circle, stated that the regulatory climate in the United States is muddy and is the reason why he had to lay off some of his employees. He also stated that the new Bermuda expansion will open 30 new job positions. As noted in some of the best cryptocurrency news sites, the volumes on Poloniex have fallen dramatically over the past few years and in the 24-hour period at press time, the exchange done just over $15 million. Some believe that this is a move to save Poloniex from crashing since its influence dropped after Binance joined the market. Binance had a trading volume which was at least 10 percent higher than Poloniex did in just a day.
Crypto Laws In Switzerland: What Makes This Country Special?
FINRA Prolongs Deadline For Companies To Report Crypto Activity
“As securities regulators continue to provide guidance to members regarding the unique regulatory challenges presented by digital assets – e.g., Joint Statement on Broker-Dealer Custody of Digital Asset Securities – FINRA believes it is important to keep the lines of communication with members open on this important topic.”FINRA suggests that the activities that should be reported include buying, selling and transacting digital assets, ICOs, and derivatives but also investing in digital assets and opening funds. Among others, the list also offers the advisory services or funds and offering custody services, mining cryptocurrencies and accepting the crypto as a mean of payment. Any other use of blockchain technology should be reported as well as the authority suggests. At the start of this month, FINRA and the Securities and Exchange Commission (SEC) issued a joint statement where they say there are a number of questions to be noted before they can approve crypto companies’ applications to become broker-dealers. One of the factor, why FINRA prolongs the date, is that the brokers need to prove that they engage with crypto in order to provide better regulation. According to a statement which we have in our altcoin news we can read that:
“The ability of a broker-dealer to comply with aspects of the Customer Protection Rule is greatly facilitated by established laws and practices regarding the loss or theft of a security, that may not be available or effective in the case of certain digital assets.’’
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